HannesBrands, Target to Part on C9 Champion Brand Deal

HannesBrands and Target won’t renew an agreement for the exclusive C9 Champion apparel, ending a 15-year run with a retailer that is increasingly shifting business to private label products. Target introduced a JoyLab private label line of activewear last fall. The current contract ends in 2020 and the C9 program is “fully booked” for this year, HannesBrand said in a statement. The line generated $380 million in revenue for HannesBrands in the year ended June 30.

HannesBrands will seek “other opportunities” at retail for the C9 brand once the Target deal ends in January 2020, says a spokesman. The expiration of the deal follows HannesBrands having posted declines in recent quarters in its mass retailer business, which company executives have called “mature.” Champion sales increased 30% in the first half of this year. Overall, the company’s net income in Q2 ended June 30 declined 18.5% to $140.6 million despite a 4.2% revenue jump to $1.7 billion. Activewear revenue, which includes Champion, jumped 6.9% to $405.7 million. HannesBrand has apparel licensing deals for Champion with colleges and universities as well as the NHL.

Contact:

HannesBrands, Barry Hytinen, Chief Financial Officer, 336-519-8080

Heidi Klum-Licensed Products Drive Naked Brands Group’s Business

Intimate apparel carrying the brand of supermodel Heidi Klum  was the top-selling line for newly formed Naked Brands Group, generating 31% of the company’s $96.8 million in the year ended Jan. 31, the company said in an SEC filing. Naked Brands Group, the surviving company from a June merger of Naked Brands and Bendon, also relied on Frederick’s of Hollywood, which is licensed from Authentic Brands Group and accounted for 17% of annual revenue, the company said. Bendon signed with Klum and Frederick’s of Hollywood in 2015, the latter a licensing deal for an apparel/ecommerce site. Sales of Frederick’s of Hollywood-related product rose 25.2% to $17.8 million. The combined company also operates 61 stores under the Bendon banner in Australia and New Zealand and designs and develops underwear, hosiery, swimwear and sportswear under the Bendon brand in addition to the two licensed lines. The Bendon brand accounted for 17% of annual revenue. Meanwhile, Naked Brands subsidiaryBendon launched a line of 20 Heidi Klum bras through 4,000 CVS stores, positioning them in the chain’s cosmetics department.

Contact:

Naked Brands Group, Justin Davis-Rice, CEO, 646-653-7710, Justin@thenakedshop.com

Dynacraft Shifting Licensed Bike, Ride-On Business to Walmart

Dynacraft is shifting a large part of its licensed bicycle and ride-on vehicle business to Walmart in the wake of Toys R Us’ demise, says a company spokeswoman. Dynacraft previously split much of the business between the two retailers, but Toys R Us’ closing forced the company to change focus to Walmart, says the spokeswoman. Of the 18 products Dynacraft is shipping starting in August, only three will be available outside Walmart, says the spokeswoman. The new line includes new licenses for Paw Patrol, Jurassic World and Realtree, the latter featured on a 24-volt all-terrain vehicle ($399) with headlights and speakers. The Realtree vehicle will be sold exclusively at 245-store Academy Sports and Outdoors.

Contact:

Dynacraft, Nelson Costa, VP Operations, 707-603-1500

Capcom’s Q1 Licensing Operating Income Rises

Capcom’s licensing operating income more than doubled to ¥411 million as royalty revenue jump 59.9% to ¥664 million in Q1 ended June 30 as it expanded programs for Resident Evil, Street Fighter, Monster Hunter and Mega Man. Capcom hired UK agent Bits+Pixels last year to extend its games’ licensing reach. In addition to consumer products, Capcom also licenses its characters for films and animated series. Overall Q1 operating income rose to ¥5.1 million from ¥784,000 as revenue jumped 46.5% to ¥17.2 million, due partly to strong sales of “Monster Hunter: World” and “Street Fighter: 30th Anniversary” titles.

Contact:

Capcom, Noriko Matsunaga, Associate Licensing Dir., 650-350-6500

Bit+Pixels, Sandra Arcan, CEO, +44 7889 196 113

Party City Buys 16 Franchised Stores in Pennsylvania

Party City is continuing to buy out franchisees, acquiring 16 stores in Pennsylvania for $18.8 million. The stores, which generated about $34 million in annual sales, expand the number of company-owned stores in Pennsylvania to 30, Party City saidThe acquisition leaves Party City with 814-company owned and 118 franchised locations. Party City most recently purchased 11 franchised stores in Maryland for $14 million.

Contact:

Party City, James Harrison, CEO, jharrison@partycity.com